BP cut 4,700 jobs to reduce costs

Chief executive Murray Auchincloss, who announced last year his intention to simplify the business, is understood to have set a cost reduction target of $2bn (£1.6bn) by the end of 2026, of which $500m will be saved this year.

In an email to staff on Thursday he said: “We have more to do this year, next year and beyond, but we are making strong progress as we position BP to be a simpler, more focused, higher value company. .”

It is understood that the cuts will apply to those in office jobs rather than operational roles.

The boss added that he recognized the “uncertainty it brings to anyone whose job may be at risk, and also the impact on colleagues and teams”.

He said that around 2,600 contractors affected by the cuts have gone out of business.

The announcement comes after a review of all BP divisions. The company has a multi-year plan to make savings across its operations, and has warned there may be more job reductions to come.

The energy giant is looking to bring more digital capabilities into the business, with artificial intelligence playing a big role in engineering and marketing operations.

Mr Auchincloss said BP was focusing its resources on “our highest value opportunities”, adding that it had stopped or paused 30 projects since June 2024.

In 2023, the firm is said to reduce its plan to reduce the amount of oil and gas produced by 2030.

The company previously promised that emissions would be 35-40% lower by the end of this decade, but announced today that it will target a 20-30% cut and maintain investment in fossil fuels.

But Mr Auchincloss, who took over the firm a year ago, hopes his cost reductions will boost the company’s share price, which has fallen around 20% since the start of last spring.

His appointment follows the sudden departure of his predecessor, Bernard Looney, amid a review of his personal relationships with colleagues.

Mr Auchincloss said the company was still “uniquely positioned to drive value through the energy transition” to renewables.

“But that doesn’t give us the automatic right to win. We have to keep improving our competitiveness and moving at the speed of customers and society,” he added.